Reduce Borrow Collateral Factor and Supply Caps for USDe to 0 on Ethereum
AI summary
This proposal aims to reduce the collateral factor and supply caps for USDe, a stablecoin, to zero on Compound's Ethereum market. This means that after the proposal passes, USDe can no longer be used as collateral for new loans on the platform. The change is intended to prevent new borrowing against USDe.
If passed, users will no longer be able to use USDe as collateral for new loans on Compound, potentially reducing the utility of USDe within the Compound ecosystem. This change is designed to protect the Compound protocol from potential risks associated with a hack involving rsETH that could affect USDe, benefiting the overall security of the protocol.
Voting results
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Reduce Borrow Collateral Factor and Supply Caps for USDe to 0 on Ethereum
This proposal reduces the Collateral Factor utilized on borrow and Supply Caps for USDe; once executed, USDe on Ethereum markets can not be used as collateral for new loans. Note that this proposal will not directly trigger any liquidations as the liquidation collateral factor remains unchanged.
The proposal will minimize the potential risk of an rsETH hack in case it affects USDe.